45126-Invest. Qual-No111

Investment in Qualitypaper concluded that the benefits of competitive tendering in termsof lower costs and improved quality outweighed any of the costsassociated with the problems encountered.The Government’s consultation paper proposed that the franchisemodel be adopted for regulation of the bus market in the GDA. TheState will define the public service to be provided and tender for itsprovision. The companies who secure franchises will haveexclusive rights to provide services on a particular route for adefined period of time. The company winning the tender will eithermake a payment to the state or receive a subvention, depending onthe potential profitability of the route in question.Under this franchising model, the role of the Government will be todefine policy, set overall targets (in terms of modal split andpassenger numbers) and set the overall level of financial support.An independent regulator, (to be established), will then ensure theprovision of a defined level and quality of bus service. It willorganise tender competitions and design an integrated bus networkas part of a wider integrated public transport network.A9.3 Public Transport Partnership Forum ResponseThe Public Transport Partnership Forum has recently responded tothe Government’s proposals for regulatory change. The Forumsupported the position of the Government’s paper that state supportfor public transport should be clearly linked to the quantity andquality of the service provided. The Forum supported effectivemechanisms for the enforcement of performance and, whereappropriate, incentives for operators to exceed minimum standards.It also recommended that public transport operators be made subjectto a statutorily-based public service obligation in respect of noncommercialservices. It recommended that payments for publicservice obligations should be linked to meeting specific andchallenging performance requirements and that work shouldcommence immediately on developing these.In relation to the regulation of the bus market in the GDA, theForum suggested the following way forward:528